A company has $250,000 to invest in either Project E or Project F. The cash flows are as follows:

Year	Project E	Project F
1	$70,000	$20,000
2	$70,000	$40,000
3	$70,000	$80,000
4	$70,000	$120,000
5	$70,000	$60,000

The discount rate is 10%.

Required:

1. For each project, calculate the:
   • Simple payback period
   • Discounted payback period
   • Net present value
2. Prepare a comparative income statement for both projects over the five years.

Advise the firm on which project to select based on the results of your calculations.